NORMAN — City officials say they will use a $50.3 million loan from the state Water Resources Board to make improvements to the city’s water reclamation/wastewater treatment plant.
Improvements will expand the plant’s capacity from 12 million to 16 million gallons per day, meet mandated standards set by the state Department of Environmental Quality, and include replacement of old or obsolete equipment.
The state board approved the Clean Water State Revolving Fund loan to the Norman Utilities Authority during the panel’s regular monthly meeting on Tuesday.
Joe Freeman, chief of the Water Resources Board’s financial assistance division, calculated that the Norman Utilities Authority’s 34,525 customers will save an estimated $15,090,000 in interest charges over the life of the 15-year loan, as compared with traditional financing.
The loan money will go toward a planned $63 million upgrade of the southside plant. Voters approved a rate hike in sanitary sewer fees in November to help pay for the project.
The Clean Water State Revolving Fund loan will be secured with a lien on the revenues of the water and wastewater system, said Utilities Director Ken Komiske.